Compulsory Health Insurance in Dubai

Compulsory Health Insurance in Dubai

In February 2014, a new law in Dubai came into effect which required the compulsory health

insurance for all residents of Dubai. The new insurance law was initiated by the Dubai Health Authority

and the legislation was signed by Sheikh Mohammed bin Rashid who is the Vice President and Ruler of

Dubai, in November 2013. The law came into effect after 60 days from the time it was duly signed and it

is a two-and-a-half year implementation plan.

This health insurance plan is divided into two phases. In Phase under the scheme, companies with 1,000

or more employees were required to provide their workers with health insurance by October 2014. In

phase two, those companies with 100 to 999 employees will have until the end of July 2015 to comply.

Those Companies with fewer than 100 workers have to provide coverage to their employees until the

end of June 2016.

Under this law, companies must cover the cost of health insurance for their employees and not the

dependents of the employees. The government will be responsible for providing health insurance for

Emiratis. Those Employers who fail to adhere to norms of this health insurance plan will have to face a

heavy fine between Dh500 and Dh150,000. Repeated breaches will carry a maximum fine of Dh500,000.

The Dubai Health Authority (DHA), which is responsible for health policies, had two main objectives

while implanting the new health insurance law; to provide complete access to quality health care and to

further bolster the booming economy of the Emirates. This compulsory health insurance law for

companies will likely provide a significant boost to the health insurance industry and it will also attract

investment in the health care sector. This will generate healthy competition between providers as well as

health facilities. This only means further improvement in the quality of health services as well as more

health care options and competitive premium prices. The...